Under the ICT (tax on services) Ordinance, 2001, the government of Pakistan proposed to reduce services tax on restaurants to 5% in fiscal year 2023-24 if payment is made through debit or credit cards, mobile wallets or QR
scanning in Islamabad Capital Territory.
In one of the salient features of budget 2023-24 unveiled on Friday, the document stated that “services provided by restaurants including cafes, food (including ice-cream) parlors, coffee houses, coffee shops, deras, food huts, eateries, resorts and similar cooked, prepared or ready-to-eat food service outlets are proposed to be taxed at 5% if payment is made through debit or credit cards, mobile wallets or QR scanning”.
Pakistan doesn't want cashless payments to protect cash hoarders. So it's taxed.
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Abdul Mateen MajeedAug 07, 2023 10:59pm
I paid 15%tax at McDonalds in Islamabad despite paying with my Credit Card. It seems they are not pushed by their actions. Either FBR should remove this so we don't haggle with them or implement it in true spirit.
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